The excitement of buying a new home often leads to anxiety when the transaction is about to close. This is because you face piles of papers that look very strange to the average person. It can be more than what you should handle, but you do not have to do it alone. This is why it requires a real estate attorney at your side, both before and during closure to help you understand what you are signing and avoid any potential problems with the new property.
Perhaps your realtor and the closing agent are very helpful. However, they are not licensed to practice law and may not be aware of a small detail that might cause big problems for you down the road.
The process of closing real estate in Florida usually follows a series of steps. As a result, even the simplest operation can take between 30-45 days to close.
Once the buyer and seller of property have accepted an offer, it shall be drawn up in writing, signed by the buyer and seller and an initial guarantee deposit is made by the buyer.
After the security deposit is made, the buyer ‘s lender or real estate agent (depends on whether the transaction is a cash sale or funded) will send a request title to a title service company to review the validity and history of the title.
The closing attorney will then process the file requesting documents like loan settlement statements, tax information, and inspection reports. Your real estate lawyer will order a title search for an insurance underwriter. This searches for documents in the public records that may affect the title to the house, such as deeds, liens or divorce settlements.
Some of the preceding conditions and documents you want your real estate lawyer to review:
Loan documents – Your lawyer determine the conditions of the loan. He will make sure that they are correct and that the valuation of the property supports the loan.
Inspection documents – He should ensure that the problems detected by the inspection have been addressed or corrected.
Property survey – This is to ensure ownership limits have been transmitted correctly and that the survey includes all the improvements, easements and rights of third-parties access.
Consents – Ensure that there are no HOA assessments pending payment on the property and, if necessary, the HOA has consented to the transaction.
If everything is clear after reviewing the documents, the closing attorney will check that the “seller” is the legal owner of the property and will take note of any debt owed.
The lawyer will then prepare all closing documents, such as an HUD-1 form, a RESPA transaction or a closing statement, a warranty deed and any affidavit that may be necessary to clean the title. These documents can go through several drafts and revisions but will be approved by the buyer and seller well before the actual closing.
Finally, the date and time are set for the two sides. All documents that need to be signed are presented, and then the two parties will sign the closing documents. This process can also be done electronically, so there is no need for you to sign printed copy of the documents. The signed documents will be stored digitally and are accessible to you. Once completed, the transaction would be released and some documents will be sent to the province in which the property is to be documented.
Does this process sound a bit confusing?
If so, that’s why it’s important to find a real estate lawyer to help speed up the process in an efficient manner. Having a real estate lawyer involved before and during closure is one of the smartest things you can do to make sure that you are protected and that the closure will be on the right track.